Russia's Yandex posts 46% jump in revenues in Q3, expands search share (updated)

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03/11/2022 10:53

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 (Adds detail, quotes)
       MOSCOW, Nov 3 (Reuters) - Russian internet giant Yandex
 YNDX.O  on Thursday reported a 46% year-on-year increase in
third quarter revenue to 133.2 billion roubles ($2.14 billion)
and expanded its dominant share in the domestic search market.  
 
    Yandex in August agreed to sell its news aggregator, content
platform Zen and homepage yandex.ru to state-controlled VK
 VKCODR.MM  in a move that is expected to tighten the
government's grip on the internet, but maintains Yandex's
stranglehold on online searches, which account for a little
under half of its revenue. 
    Yandex has, like many Russian companies, endured a turbulent
year. It plunged to a first-quarter loss and its shares tumbled
to six-year lows before trading was suspended in late February,
shortly after Moscow sent tens of thousands of troops into
Ukraine. Revenue and profits have since recovered.
    "Current geopolitical tensions and their impact on the
Russian and global economy have created an exceptionally
challenging environment for our business, team and
shareholders," Yandex said in a statement. 
    Yandex said revenue growth was mainly driven by improvements
in ad technologies and "changes in (the) competitive landscape,
which led to an increase of our market share compared to last
year."
    The company said its search market share had averaged 62% in
the quarter, up from 59.3% a year earlier. 
    Adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) stood at 20 billion roubles for the
quarter.
    Yandex said the solid revenue growth and savings related to
advertising and marketing had helped offset the moderate adverse
effect from the divestment of News and Zen, which was only
completed a few weeks before the end of the reporting period. 
    ($1 = 62.1000 roubles)
 (Reporting by Alexander Marrow and Gleb Stolyarov; editing by
Kevin Liffey and Jason Neely)
 ((alexander.marrow@thomsonreuters.com))